SUPPLEMENT TO THE
FIDELITY INSTITUTIONAL MONEY MARKET FUNDS'
MAY 29, 1998
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND IN THE "INVESTMENT
POLICIES AND LIMITATIONS" SECTION OF TREASURY PORTFOLIO ON PAGE 4:
(vi) The fund does not currently intend to make loans, but this
limitation does not apply to purchases of debt securities or to
repurchase agreements.
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND IN THE "INVESTMENT
POLICIES AND LIMITATIONS" SECTION OF GOVERNMENT PORTFOLIO ON PAGE 5:
(vi) The fund does not currently intend to make loans, but this
limitation does not apply to purchases of debt securities or to
repurchase agreements.
THE FOLLOWING REPLACES SIMILAR INFORMATION IN FOUND IN THE "INVESTMENT
POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 10:
FEDERALLY TAXABLE SECURITIES. Under normal conditions, a municipal
fund does not intend to invest in securities whose interest is
federally taxable. However, from time to time on a temporary basis, a
municipal fund may invest a portion of its assets in fixed-income
securities whose interest is subject to federal income tax.
Should a municipal fund invest in federally taxable securities, it
would purchase securities that, in FMR's judgment, are of high
quality. These securities would include those issued or guaranteed by
the U.S. Government or its agencies or instrumentalities and
repurchase agreements for those securities.
A municipal money market fund will purchase taxable securities only if
they meet its quality requirements.
Proposals to restrict or eliminate the federal income tax exemption
for interest on municipal securities are introduced before Congress
from time to time. Proposals also may be introduced before state
legislatures that would affect the state tax treatment of a municipal
fund's distributions. If such proposals were enacted, the availability
of municipal securities and the value of a municipal fund's holdings
would be affected and the Trustees would reevaluate the fund's
investment objectives and policies.
THE FOLLOWING INFORMATION SUPPLEMENTS THE SIMILAR INFORMATION FOR
TREASURY ONLY PORTFOLIO FOUND IN THE "YIELD CALCULATIONS" DISCUSSION
BEGINNING ON PAGE 15:
Treasury Only's tax-equivalent yield is the rate an investor would
have to earn from a fully taxable investment to equal the fund's tax
free yield. For Treasury Only, earning interest free from state (and
sometimes local) taxes in most states, tax-equivalent yields may be
calculated by dividing the fund's yield by the result of one minus a
specified tax rate.
THE FOLLOWING SENTENCE HAS BEEN REMOVED FROM THE "PERFORMANCE" SECTION
ON PAGE 17:
Note that the fund may invest in securities whose income is subject to
the federal alternative minimum tax.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR TAX-EXEMPT
PORTFOLIO FOUND IN THE TABLE ON PAGE 19:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Class I Class II Class III
Fund Seven-Day Yield Tax-Equivalent Yield Seven-Day Yield Tax-Equivalent Yield Seven-Day Yield Tax-Equivalent Yield
Tax-Exempt 3.49% 5.45% 3.19% 4.98% 3.10% 4.84%
</TABLE>
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 36:
*EDWARD C. JOHNSON 3d (67), Trustee and President, is Chairman, Chief
Executive Officer and a Director of FMR Corp.; a Director and Chairman
of the Board and of the Executive Committee of FMR; Chairman and a
Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc., and Fidelity Management &
Research (Far East) Inc. Abigail Johnson, member of the Advisory
Board of Colchester Street Trust, is Mr. Johnson's daughter.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 36:
ABIGAIL P. JOHNSON (37), Member of the Advisory Board of Colchester
Street Trust (1999), is Vice President of certain Equity Funds (1997),
and is a Director of FMR Corp. (1994). Before assuming her current
responsibilities, Ms. Johnson managed a number of Fidelity funds.
Edward C. Johnson 3d, Trustee and President of the Funds, is Ms.
Johnson's father.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 36:
RICHARD A. SILVER (51), Treasurer (1997), is Treasurer of the Fidelity
funds and is an employee of FMR (1997). Before joining FMR, Mr. Silver
served as Executive Vice President, Fund Accounting & Administration
at First Data Investor Services Group, Inc. (1996-1997). Prior to
1996, Mr. Silver was Senior Vice President and Chief Financial Officer
at The Colonial Group, Inc. Mr. Silver also served as Chairman of the
Accounting/Treasurer's Committee of the Investment Company Institute
(1987-1993).
THE FOLLOWING INFORMATION REPLACES THE COMPENSATION TABLE FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION ON PAGE 39:
The following table sets forth information describing the
compensation of each Trustee and Member of the Advisory Board of each
fund for his or her services for the fiscal year ended March 31, 1998,
or calendar year ended December 31, 1997, as applicable.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMPENSATION TABLE
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Gary Burkhead** Ralph F. Cox
FUND
Treasury OnlyB $ 0 $ 0 $ 0 $ 483
TreasuryB 0 0 0 3,415
GovernmentB 0 0 0 1,658
DomesticB 0 0 0 488
Rated Money MarketB 0 0 0 156
Money MarketB,C,D 0 0 0 4,030
Tax-ExemptB 0 0 0 911
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 214,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates*** E. Bradley Jones Donald J. Kirk Peter S. Lynch**
FUND
Treasury OnlyB $ 483 $ 496 $ 483 $ 483 $ 0
TreasuryB 3,415 3,505 3,415 3,415 0
GovernmentB 1,658 1,699 1,658 1,658 0
DomesticB 488 500 488 488 0
Rated Money MarketB 156 159 156 156 0
Money MarketB,C,D 4,030 4,130 4,030 4,030 0
Tax-ExemptB 911 289 911 911 0
TOTAL COMPENSATION FROM THE $ 210,000 $ 176,000 $ 211,500 $ 211,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A William C. McCoy **** Gerald C. McDonough Marvin L. Mann Robert C. Pozen**
FUND
Treasury OnlyB $ 496 $ 603 $ 477 $ 0
TreasuryB 3,505 4,264 3,369 0
GovernmentB 1,699 2,067 1,636 0
DomesticB 500 609 482 0
Rated Money MarketB 159 194 154 0
Money MarketB,C,D 4,130 5,024 3,975 0
Tax-ExemptB 289 1,136 899 0
TOTAL COMPENSATION FROM THE $ 214,500 $264,500 $ 214,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
AGGREGATE COMPENSATION FROM A Thomas R. Williams
FUND
Treasury OnlyB $ 483
TreasuryB 3,415
GovernmentB 1,658
DomesticB 488
Rated Money MarketB 156
Money MarketB,C,D 4,030
Tax-ExemptB 911
TOTAL COMPENSATION FROM THE $214,500
FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1997 for
230 funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead
are compensated by FMR.
*** Mr. Gates was elected to the Board of Trustees of Colchester
Street Trust on December 17, 1997.
**** Mr. McCoy was elected to the Board of Trustees of Colchester
Street Trust on December 17, 1997.
A Compensation figures include cash, amounts required to be
deferred, and may include amounts deferred at the election of
Trustees. For the calendar year ended December 31, 1997, the Trustees
accrued required deferred compensation from the fund complex as
follows: Ralph F. Cox, $75,000; Phyllis Burke Davis, $75,000; Robert
M. Gates, $62,500; E. Bradley Jones, $75,000; Donald J. Kirk, $75,000;
William O. McCoy, $75,000; Gerald C. McDonough, $87,500; Marvin L.
Mann, $75,000; and Thomas R. Williams, $75,000. Certain of the
non-interested Trustees elected voluntarily to defer a portion of
their compensation as follows: Ralph F. Cox, $53,699; Marvin L. Mann,
$53,699; and Thomas R. Williams, $62,462.
B Compensation figures include cash, and may include amounts
required to be deferred and amounts deferred at the election of
Trustees.
C The following amounts are required to be deferred by each
non-interested Trustee: Ralph F. Cox, $1,901; Phyllis Burke Davis,
$1,901; Robert M. Gates, $1,923; E. Bradley Jones, $1,901; Donald J.
Kirk, $1,901; William O. McCoy, $1,923; Gerald C. McDonough, $2,218;
Marvin L. Mann, $1,901; and Thomas R. Williams, $1,901.
D Certain of the non-interested Trustees' aggregate compensation
from a fund includes accrued voluntary deferred compensation as
follows: Thomas R. Williams, $1,586, Money Market Portfolio.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND UNDER
THE HEADING "DESCRIPTION OF THE TRUST" ON PAGE 48:
AUDITOR. PricewaterhouseCoopers LLP, One Post Office Square,
Boston, Massachusetts served as independent accountant for each fund
for the most recent fiscal period. The auditor examined financial
statements for the funds and provided other audit, tax, and related
services.
AUDITOR . Effective February 18, 1999, Deloitte & Touche LLP,
125 Summer Street, Boston, Massachusetts serves as independent
accountant for each fund for the next fiscal period. The auditor
examines financial statements for the funds and provides other audit,
tax, and related services.
